13 08 EU PRE OPEN

INDICES
Yesterday, European stocks advanced further. The Stoxx Europe 600 Index gained 1.11%, Germany's DAX 30 rose 0.86% and France's CAC 40 was up 0.90%. The U.K.'s FTSE 100 surged 2.04% despite the U.K. economy contracting by 20.4% on quarter in the second quarter and confirming a recession.

EUROPE ADVANCE/DECLINE
73% of STOXX 600 constituents traded higher yesterday.
78% of the shares trade above their 20D MA vs 71% Tuesday (above the 20D moving average).
57% of the shares trade above their 200D MA vs 55% Tuesday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 0.92pt to 22.47, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: none
3mths relative low: none

Europe Best 3 sectors
telecommunications, utilities, financial services

Europe worst 3 sectors
travel & leisure, real estate, industrial goods & services


INTEREST RATE
The 10yr Bund yield rose 5bps to -0.48% (above its 20D MA). The 2yr-10yr yield spread fell 1bp to -21bps (below its 20D MA).


ECONOMIC DATA
FR 06:30: Q2 Unemployment Rate, exp.: 7.8%
GE 07:00: Jul Harmonised Inflation Rate YoY final, exp.: 0.8%
GE 07:00: Jul Harmonised Inflation Rate MoM final, exp.: 0.7%
GE 07:00: Jul Inflation Rate MoM final, exp.: 0.6%
GE 07:00: Jul Inflation Rate YoY final, exp.: 0.9%
GE 07:00: Jul Wholesale Prices YoY, exp.: -3.3%
GE 07:00: Jul Wholesale Prices MoM, exp.: 0.6%
FR 09:00: IEA Oil Market Report


MORNING TRADING
In Asian trading hours, EUR/USD advanced to 1.1810 and GBP/USD rebounded to 1.3062. USD/JPY eased to 106.70. AUD/USD edged up to 0.7170. Earlier today, official data showed that the Australian economy added 114,700 jobs in July (+30,000 jobs expected), while jobless rate rose to 7.5% (7.8% expected) from 7.4% in June.

Spot gold climbed to $1,936 an ounce.


#UK - IRELAND#
GVC, a sports-betting and gaming group, posted 1H results: "Across the first half Group NGR was 11% behind last year (-10% cc), primarily as a result of the COVID-19 restrictions. Some substitution of retail customers into online, and into gaming from sports, underpinned very strong Online NGR growth, which was 19% ahead (+21% cc). (...) Underlying EBITDA was 5% lower at £348.6m. (...) Group underlying operating profit was £223.9m and, after charging £25.3m of separately disclosed items, finance costs and tax, profit after tax was £2.1m. (...) The Board now expects the Group to deliver underlying EBITDA of £720m-£740m for the full year."

Helios Towers, a telecommunications infrastructure company, released 1H results: "H1 2020 Group revenue increased by 7% year-on-year to US$204.0m (H1 2019: US$190.7m). (...) H1 2020 Adjusted EBITDA increased by 10% year-on-year to US$109.1m (H1 2019: US$99.0m). (...) H1 2020 operating profit increased by 131% year-on-year to US$29.3m (H1 2019: US$12.7m). (...) Our guidance for 2020 remains unchanged."


#GERMANY#
Deutsche Telekom, a telecommunications company, announced that 2Q net income slid 20.1% on year to 754 million euros and adjusted EBITDA AL increased 56.4% to 9.83 billion euros on revenue of 27.04 billion euros, up 37.5%. The company said: "The business combination of T-Mobile US and Sprint has a material impact on our results of operations and financial position. (...) As a result, we are raising our Group guidance for the 2020 financial year, with adjusted EBITDA AL now expected to come in at approximately EUR 34 billion, up from EUR 25.5 billion, and cash capex (before spectrum investment) at around EUR 17 billion, up from EUR 13.0 billion."

RWE, an electric utilities company, posted 1H adjusted net income of 795 million euros and adjusted EBITDA grew 18.5% on year to 1.81 billion euros. The company added: "RWE projects that both adjusted EBITDA and adjusted EBIT will be at the upper end of the forecast range for fiscal 2020: Adjusted EBITDA should come in between E2.7 billion and E3.0 billion, with adjusted EBIT of between E1.2 billion and E1.5 billion. The target for adjusted net income is E850 million to E1.15 billion. The company confirms its planned increase of the dividend to E0.85 per share for this year."

Deutsche Wohnen, a property group, reported that FFO I fell 1.8% on year to 283 million euros and EBITDA dropped 12.5% to 334 million euros on rental income of 422 million euros, up 2.6%.


#FRANCE#
Euronext, a stock exchange operator, and the Italian government are considering a joint acquisition of Borsa Italiana, Italy's stock market operator owned by London Stock Exchange Group, reported Bloomberg citing people familiar with the matter.

Natixis, an investment bank, was upgraded to "overweight" from "equalweight" at Barclays.


#SWITZERLAND#
Swisscom, a major Swiss telecommunications provider, announced that 1H net income slid 5.6% on year to 736 million Swiss franc and EBITDA fell 1.4% to 2.21 billion Swiss franc on net revenue of 5.44 billion Swiss franc, down 3.9%. Regarding the outlook, the company stated: "Swisscom continues to expect EBITDA of around CHF 4.3 billion and capital expenditure of around CHF 2.3 billion for 2020. Mainly as a result of Covid-19, Swisscom expects net revenue to be slightly lower at around CHF 11.0 billion (previously around CHF 11.1 billion) due to the smaller roaming volume. If business develops as planned, Swisscom will propose to the 2021 Annual General Meeting that the dividend for the 2020 financial year remain unchanged at CHF 22 per share."
From a daily point of view, the share has escaped above a descending triangle drawn since June with growth on volume. Above the lower bound of the triangle at 480CHF look for the horizontal resistance at 526CHF and 548 CHF in extension.


Source: GAIN Capital, TradingView
Swiss Life, an insurance group, reported that 1H net profit fell 13% on year to 537 million Swiss franc and adjusted profit from operations dropped 6% to 780 million Swiss franc on premiums of 11.6 billion Swiss franc, down 16% in local currency.


#DENMARK#
Carlsberg, a Danish multinational brewer, announced that 1H adjusted net income slipped 0.4% on year to 2.87 billion Danish krone and operating profit dropped 10.8% on year (-8.9% organic growth) to 4.62 billion Danish krone on revenue of 28.83 billion Danish krone, down 12.6% (-11.6% organic growth). The company said it expects a full-year organic operating profit decline of 10-15%.


EX-DIVIDEND
Ashtead Group:33.5p, AstraZeneca (AZN): $0.9, BP (BP/): $0.0525, Diageo:42.47p, Glaxosmithkline:19p, Legal & General:4.93p, Royal Dutch Shell (RDSA): $0.16, Segro Plc:6.9p